Aggregate Limit
Maximum dollar amount of coverage in force under a health insurance policy, a property damage policy, or a liability policy. This maximum can be on an occurrence basis, or for the life of the policy. The following are examples:
- Health insurance. The insured was billed $107,000 for a serious illness, but the aggregate limit of the policy was $100,000 for the life of the policy, so the most that the insured could be reimbursed is $100,000. The insured would have to pay $7000. Any medical expenses arising from future illness would now have to be paid by the insured.
- Liability insurance. The insured is at fault in an automobile accident (single occurrence) causing injury to four individuals of $100,000, $150,000, $85,000 and $115,000, respectively, a total of $450,000. The aggregate limit of the policy is $400,000. The insured would have to pay the remaining $50,000.
Popular Insurance Terms
Partnership between an agency of the U.S. government and the Foreign Credit Insurance Association (50 commercial insurance companies, both stock and mutual). Insures that businesses are ...
Same as term Adjuster: individual employed by a property and casualty insurance company to settle on its behalf claims brought by insureds. The adjuster evaluates the merits of each claim ...
Same as term Cancellation Provision Clause: provision permitting an insured or an insurance company to cancel a property and casualty or a health insurance policy (circumstances vary; see ...
Coverage tailored to the particular requirements of an insured, when a standard policy cannot be used to provide coverage for real or personal property. A manuscript policy is often written ...
Coverage for robbery of the payroll of a business. Coverage applies to money and checks from the time the payroll is withdrawn from the bank until it is distributed to the employees, ...
Same as term Explosion, Collapse, and Underground Exclusion: inherent danger resulting from certain construction procedures that are excluded from general business liability policies. ...
Legislation governing wrongful acts, other than breaches of contract by one person against another or his or her property, for which civil action can be brought. Tort law and contract law ...
Same as term Chartered Life Underwriter: professional designation conferred by the American College. In addition to professional business experience in insurance planning and related ...
Insurance transactions conducted across national boundaries. Such transactions occur when the insurance company sells insurance outside the country of the company's domicile. ...
Have a question or comment?
We're here to help.